PLNEUR closes higher for the 2nd day in a row
Polish Zloty/Euro (PLNEUR) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PLNEUR finished Monday at 0.2273 surging 25 pips (1.11%) on high volume. Today's close at 0.2273 marks the highest recorded closing price since March 13th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.2253, the FX pair confirmed its breakout through the prior session high after trading up to 20 pips above it intraday.
Daily Candlestick Chart (PLNEUR as at Jun 01, 2020):
Monday's trading range has been 28 pips (1.25%), that's far above the last trading month's daily average range of 14 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for PLNEUR.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
The currency managed to close above the 100-day moving average at 0.2263 for the first time since February 19th. When this moving average was crossed above the last time on February 4th, PLNEUR gained 0.73% on the following trading day. The forex pair found buyers again today around 0.2245 for the third trading day in a row after having found demand at 0.2242 in the previous session and at 0.2244 two days ago.
Crossing above the upper Bollinger Band for the first time since May 27th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.2214 or signal the beginning of a strong momentum breakout leading to even higher prices.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for PLN/EUR. Out of 7 times, PLNEUR closed lower 85.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 42.86% with an average market move of -0.42%.